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Facts
The assessee, a social organization, applied for registration under Section 80G(5)(ii) of the Income Tax Act in Form 10AB. The application was rejected by the CIT(E) on the sole ground that the assessee had selected the wrong section code, despite having obtained provisional registration under Section 80G(5)(iv) previously.
Held
The Tribunal determined that selecting an incorrect section code was a curable technical mistake, as supported by a prior ITAT decision. It set aside the CIT(E)'s rejection order and remanded the matter back for fresh adjudication, instructing the CIT(E) to grant registration after rectifying the defects as per law, considering the assessee's fresh application under Section 80G(v)(iii).
Key Issues
Whether the rejection of an application for registration under Section 80G(5)(ii) solely due to the selection of an incorrect section code constitutes a curable technical defect warranting remand for fresh adjudication.
Sections Cited
80G(5)(ii), 12A(1)(ac)(i), 80G(5), 80G(5)(iv), 12A(1)(ac)(ii), 12A(1)(ac)(iii), 80G(v)(iii)
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Income Tax Appellate Tribunal, “D” BENCH: KOLKATA
Before: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]
ORDER / आदेश Per Pradip Kumar Choubey, JM:
This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Exemption)- Kolkata (hereinafter referred to as the Ld. CIT(A)] dated 21.12.2024 for AY 2025-26.
Assessment Year: 2025-26 Purbottar Pradeshiya Marwari Sanmelan 2. Brief facts of the case of the assessee is that the assessee is a social organization registered under Registrar of Societies Act, 1860. The assessee filed an application for registration u/s 80G(5)(ii) of the Act in Form no. 10AB. The form of the assessee has been rejected by the Ld. CIT(E ) by holding that the assessee had selected the wrong section code while applying from 10AB.
Being aggrieved and dissatisfied the assessee preferred an appeal before us.
The Ld. Counsel for the assessee challenges the impugned order thereby submitting that the assessee is registered as AOP u/s 12A(1)(ac)(i) under the Income Tax Act, 1961 for the AY 2022-23 to AY 2026-27. The assessee has granted provisional registration u/s 80G(5) of the Act dated 24.11.2021 form 24.11.2021 to AY 20224-25. The Ld. Counsel submits that the assessee selected wrong section code as it was due to the provision of the above clause which was not clear and even if the assessee applied under wrong section code, it is a curable defect so the order passed by the Ld. CIT(E ) is erroneous and liable to be set aside.
The Ld. D.R supports the impugned order.
Upon hearing the submission of the counsel of the respective parties. The following facts have been emerged: i) The assessee is a social organization registered under Registrar under Societies Act, 1860. ii) the assessee granted provisional registration u/s 80G(5)(iv) of the first proviso vide Registration NO. AACAP 1739 JF20216 dated 24.11.2021 from 24.11.2021 to AY 2024-25. The assessee applied for registration under section 80G(5)(ii) of the first proviso to Act in form 10AB within the extended time.
The Ld. CIT(E ) has rejected the application of the assessee only on this ground that the assessee had selected wrong section code while applying for form 10AB. It admits of no doubt that it is a technical mistake. The assessee has cited a decision passed Assessment Year: 2025-26 Purbottar Pradeshiya Marwari Sanmelan in dated 05.06.2024 in the case of Raj Krishan Jain Charitable Trust in which the Tribunal has held thus:
The appellant has committed a technical mistake in making the application under Section 12A(1)(ac)(ii) instead of sub-clause (iii) of clause (ac) of Sub-section (1) of Section 12A of the Act. Hence the appeal is allowed and set aside the order of Ld. CIT(E ) dated 15.03.2024 and remand the matter back to the file of Ld. CIT(E ) for fresh adjudication by considering the amended application of the appellant under Section 12A(1)(ac)(iii) of the Act or he can call for amended application from the appellant.
It is further pertinent to mention here that the assessee has applied afresh under clause 80G(v)(iii) in form 10AB on 10.01.2025. Keeping in view, the above facts and considering the order of ITAT the case is again restored to the file of Ld. CIT(E) for considering this case of the assessee. The Ld. CIT(E) shall pass a afresh order in granting registration of the assessee after curing the defects as per law.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 16th April, 2025
Sd/- Sd/- (Rajesh Kumar/राजेश कुमार) (Pradip Kumar Choubey /�द�प कुमार चौबे) Accountant Member/लेखा सद�य Judicial Member/�या�यक सद�य Dated: 16th April, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Purbottar Pradeshiya Marwari Sanmelan, Brindavan Market, S. J. Road, Athgoan, Assam-781001 2. Respondent – CIT(E ), Kolkata 3. Ld. PCIT- , Kolkata 4. DR, Kolkata Benches, Kolkata (sent through e-mail)